Should I buy in Denver, and focus on larger rents after I pay it off, or should I buy out of state for all cash and get immediate supplemental income?

The lump sum money may negatively impact the amount the state will supplement for care until all of her cash has been spent.

Nothing wrong with getting into rentals for supplemental income but I'd shoot for a rental that appreciates in value. 

I'd suggest going this route to supplement your current business but don't look at it as your main source.

* My goals: I'd like to generate some supplemental passive income through investing in real estate rentals in cheaper markets, with the end goal being to assist me in saving to buy a home of my own here in Los Angeles (in the $750k range), and maybe eventually replace my current work.* My job: I currently work from home running my own online fashion brand (it's an LLC).

Supplement with time intensive marketing strategies like bandit signs to affordably increase deal flow, too.

After a few tough weeks at work, I realized that I need to get more serious about real estate investing as a strategy to supplement and eventually replace my day job income.   

This strategy has worked very well for him, supplementing it with traditional investment deals throughout the process but this strategy is not for everyone, just a case-study.

I wanted to use real estate as a vehicle to become debt-free (besides my mortgages) and I wanted passive income to supplement my pending pension income.

I do not think his money comes from fraudulent sources and he does not even speak to me about asking for a loan, rather he told me to buy in cash so I can supplement the rest of the payment.I know he has paid his taxes since he is here and he has an ITIN number with the registration of those taxes.